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Reason
Reason
Eugene Volokh

Diversity (the Civil Procedure Kind) and Self-Identification

From Judge Gerald McHugh's opinion Friday in Sherman v. American Ass'n of Suicidology, Inc. (E.D. Pa.), an interesting illustration of how courts interpret rules to prevent improper manipulation by the parties and undue confusion for adversaries:

This is an action brought against an association incorporated in Washington D.C., which operates remotely, with no fixed physical location. For practical purposes it operates wherever its executive director is located.

When the action was filed in state court, there is no dispute that its executive director, Denise Hyater, was a resident of the District of Columbia, and discharged her duties there. This would have supported diversity jurisdiction if the case had been removed then, because the "nerve center" for remote entities is the state from which its activities are being directed. But the parties agree that diversity must continue to exist at the time of removal.

Removal here occurred on December 30, 2025. Plaintiff has moved to remand, because, as of that date, Defendant's website represented that the executive director of the association was Jenna Baker, who the parties agree was a resident of Pennsylvania, the same as Plaintiff. Defendant responded with an affidavit representing that the formal transition of authority did not occur until the following day, with the result that the association should be deemed a citizen of the District of Columbia on the date of removal. That response has in turn prompted Plaintiff to seek limited discovery on the issue of diversity.

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